The FHA offers a unique type of product that allows a purchase or refinance mortgage loan to include the expected cost of repairs and renovations. With a minimum 3.5% down payment for qualified applicants, a 203(k) mortgage rehabilitation loan can exceed the purchase price but not the FHA maximum [...]
Delayed financing allows homebuyers to purchase a property with cash, then obtain a cash-out refinance mortgage to recoup all, or most, of the money used for the purchase. This strategy lets the buyer make a cash offer on a property, which is more attractive to sellers, especially in a [...]
A mortgage escrow account is one of the terms you're likely to come across in your home purchase process. Moreover, a mortgage escrow account comes into play after you've bought the house. If you're not sure how this concept works, you're in the right place. Keep reading to learn [...]
FICO scores, commonly called credit scores, are a statistical gauge of an individual's ability to repay a loan. Your credit score is a key consideration in any loan process. It is the primary factor lenders use to determine how much they will loan a borrower and the interest rate. [...]
When purchasing a home, buyers are responsible for paying closing costs and prepaids. The difference between the two can often be confusing, especially since they are paid when closing on a home purchase. Here’s what you need to know so you’re prepared for closing day. Closing Costs vs. Prepaids: [...]
Most buyers, particularly first-timers, will probably borrow money to purchase a home or other real estate property. The process consists of working with a lender to qualify for a home loan at a specific interest rate for a set amount of time. The homeowner is then responsible for making [...]
Unless homebuyers pay cash for the total price of a home, they are likely to borrow at least some of the money needed to make the purchase. Banks, mortgage companies, and other lenders offer a broad array of secured loans, known as mortgages, to help buyers realize their dream. [...]
Soon after signing mortgage loan documents that lock in a 15- or 30-year debt, homeowners dream about paying off the debt early to get rid of the monthly burden. But, even if you could pay the mortgage off early, is it a good idea? When Considering Paying Off a [...]
A pre-approval letter is a document from a lender based on certain assumptions, stating the maximum the lender is willing to lend to purchase a home. When applying for a mortgage pre-approval, the lender typically requires information about your credit, employment, income, debts, and assets to determine your creditworthiness. [...]
As you prepare to purchase a new home, you'll hear the terms "pre-qualified" and "pre-approved." These are key steps in the mortgage application process. However, there are important differences in the two terms that every homebuyer needs to understand. Briefly, being pre-qualified is a first step in the mortgage [...]
